performance
rights are a
writer's
and publisher'smost important source of
continuing
royalty income

The basic
differences
in the structures of ASCAP and BMI
are illustrated in an opinion and order (Civil Action
No. 41-1395(pdf)) issued
by
the United States District
Court / Southern District of New York - Judge William C.
Connor presiding . (April 30, 2008):

"ASCAP
has a
contractual duty to represent the interests of its members
- composers, lyricists, and publishers - in its license negotiations
with third parties." (Page 16 Section A paragraph
53.)

"BMI's agreements
with
its writers and publishers contain no
contractual obligation for BMI to represent the interests of writers
and publishers in BMI's license negotiations with third parties. Moreover,
the BMI
Affiliate Agreement
expressly disclaims any fiduciary duty to its contracting writer and
publisher affiliates. " ( Page 17 Section
B paragraph 56.)

A
POINT BY POINT COMPARISON OF ASCAP
AND BMI*

ASCAP

BMI

FULL
NAME

American
Society of Composers, Authors and Publishers

Broadcast
Music, Incorporated

WHAT
IT IS

A
membership
association comprised of songwriters, composers, lyricists and music
publishers.

A
corporation with which writers and publishers are affiliated.

WHAT
ITDOES

Under
U.S. Copyright Law, those who publicly want to perform copyrighted
music
(radio, TV, cable, bars, clubs, restaurants, shopping malls, concert
halls,
airlines, orchestras, websites, theme parks, etc.) must have the
permission
of the copyright owner. ASCAP licenses these users of music,
collects
the fees and pays its writer and publisher members their performance
royalties.

Fundamentally performs the same
licensing, collection and payment
functions as ASCAP.

OWNERS

Writer
and publisher members

Radio
and television broadcasters. (The very
organizations
ASCAP and BMI license!)

REVENUE

ASCAP reported income
of $995
million 2009 and
payments of $863 million to to be
members.
ASCAP's
operating ratio is among the lowest in the
world.

BMI reported income of
$905 million 2009 and payments
of $788 million to affiliates.

YEAR
FOUNDED

1914
by
writers and music publishers.

1939
by
the broadcasting industry.

LICENSE
FEESDETERMINED
BY

Negotiation
with music users. If any licensee and ASCAP cannot come to an
agreement,
a federal court is available to determine a reasonable fee for that
customer's ASCAP
license.

Writers
and publishers sign identical contracts and may resign at the end of
any
year of the contract on three months advance written notice

The
standard writer contract is for two years and the standard publisher
contract
is for five years. Some writers and publishers negotiate shorter-term
or
co-terminous deals.

The two- and
five-year contracts
continue to renew for additional two- and five-year periods if the
termination
date is missed. Termination notice must be by registered or certified
mail
within a specific window (for example, no sooner than six months and no
later than 60 or 90 days prior to the end of the contract).

WHO
CAN JOIN

Songwriters,
composers, lyricists and music publishers, since 1914.

Open
only to music publishers from 1939 to 1950; writers able to affiliate
commencing
1950.

WRITER
ANDPUBLISHERROYALTYPAYMENTS

Four
domestic
and four incoming foreign distributions per year. Moneys from all U.S.
licensed areas are distributed to writers and publishers distributed quarterly.

50% to writers
and 50% to
publishers.

Clearly defined,
objective
and fair payment system.

Guided by a
"follow the dollar"
principle in the design of its payment system. In other words, the
money
collected from a particular medium (TV, radio, etc.) is distributed on
the basis of performances in that medium.

Performances can
be feature
performances (visual vocal on TV, a song played on the radio, etc.),
underscore
(background music on a movie of the week or a weekly series), a theme
song
to a series, an advertising jingle, a promo or a logo. In radio, almost
all performances are feature performances.

On television,
payments are
based on when a performance occurs (afternoon, evening, etc.), where a
performance occurs (network, cable, local television, etc.), and how a
composition is used(feature,
underscore, theme
song, jingle, etc.)

Based on all of
these factors,
a performance will generate a certain number of credits which in turn
are
multiplied by a dollar value to arrive at a writer or publisher payment.

Four distributions
per year to writers
and
publishers. Each
combines domestic and incoming foreign Most U.S. moneys
distributed quarterly.

50% to writers
and 50% to
publishers.

Payment schedule
lists minimum
amounts due for some types of performances.

Most writers' and
publishers'
royalties are in the form of one-time "voluntary" payments over and
above
the minimum payment-schedule rates. These "voluntary" payments may vary
significantly from distribution to distribution and may also vary
significantly
between different types of performances. The size of each voluntary
payment
is determined each quarter by BMI management. These voluntary payments
have ranged from 0% to more than 300% above the payment rate.

May move moneys
around (e.g.,
radio royalties distributed on the basis of television performances and
vice versa).

AREASLICENSEDAND
SURVEYEDFOR
PAYMENTTO
MEMBERS

Local
commercial radio and television, the major television networks,
non-commercial
radio (including National Public Radio and college stations),
non-commercial
television, cable services, background and foreground music services,
airlines,
colleges and universities, "serious" music concerts, pop concerts, new
media, Internet, certain ice shows and circuses; non-surveyed license
fees
distributed on the basis of feature performances on radio and all uses
on television (background music, theme songs; etc.).

ASCAP uses
a three-pronged
approach to surveys for highest levels of performance data accuracy.
Surveys
use a combination of the most advanced digital tracking technologies,
data
provided by licensees, and an in-house staff of music experts.

In radio, ASCAP
conducts
separate surveys of country, Latin, jazz, urban contemporary,
religious,
classical, ethnic, and pop music stations so that the total moneys
collected
from those genre-specific stations are paid to the writers of works
with
performances on those stations.

Specific
distribution formulas
applicable to all surveyed areas and for all types of performances.

License
same general areas as ASCAP

No specific
payment formula
is set forth in the BMI payment schedule for any licensed area other
than
network television, local TV and radio

LIVEPERFORMANCEROYALTIES

Royalties
are paid for all performances by headliners and opening acts in the
200
top-grossing U.S. concert tours, as well as selected other major live
performance
venues. Live performance payments commenced in 1993.

Commenced
paying on live concert performances in 1996.

COLLEGERADIO

Has
surveyed and paid on college radio performances since 1979.

Has
surveyed and paid on college radio performances since 1989.

NEW MEDIA

The
first
American performing rights organization paying its composer, writer and
publisher members for music performances on the Internet beginning in
June
1997. ASCAP
has developed many technological innovations
that have set international standards for performance identification,
such as MediaGuide, the most
comprehensive and accurate performance
tracking system using advanced "fingerprinting" technology. The ASCAP Network is
another ASCAP new media first. The ASCAP Network features ASCAP
Radio, Podcasts, Audio Portraits, ASCAP Video, and Interactive Member
Profiles all dedicated to the works of ASCAP members exclusively.

The New Media & Strategic
Development team spearheads analysis,
planning and strategic development for BMI in digital media marketplace
as well as managing the company's digital interests in the U.S. and
around the world. Computerization has
facilitated the collection of performance data,
distribution of royalty payments, management of licensing fees and
automation of accounting functions

SPECIALDISTRIBUTIONS

Where
substantial moneys are received in a current year for prior periods, ASCAP
has included those moneys in special distributions. These are designed
to direct the royalties received to those members who had performances
in the years in question. Members of foreign societies participate in
these
distributions. Special distributions have been made from moneys
received
from the ABC, CBS and NBC television networks, local TV stations, MTV
and
HBO, among others. Specific explanations are forwarded to all members
as
to how their shares of the overall distribution were determined.

When
retroactive moneys have been received by BMI, they generally have not
been
paid out in the form of special distributions to writers and publishers
who had performances during the periods for which the moneys were due.
Where special distributions have been made, little information has been
provided as to how each writer's and publisher's royalties were
determined.

FOREIGNPERFORMANCES

Through
agreements with foreign societies in the major countries of the world, ASCAP
receives royalties for the performances of works written by ASCAP
members which are performed in foreign countries. ASCAP
also collects for foreign society writers and publishers for
performances
of their works in the U.S. and forwards those moneys to foreign
societies
for distribution to their members. (See: The
ASCAP International Advantage)

Has
agreements with foreign societies for the payment to BMI of royalties
due
affiliates for their performances in foreign countries. Does not
publish
foreign financial data. Forwards U.S. money to foreign societies for
distribution
for U.S. performances.

RELATIONS
WITHFOREIGNSOCIETIES

Agreements
with practically all foreign societies provide that ASCAP
licenses
their repertories except for works specifically excluded.

In
most countries of the world, works go into BMI repertory only on
specific
request

WRITER
AND PUBLISHERINVOLVEMENT

Writers
and publishers elect the Society's Board of Directors
and a Board
of
Review (.pdf).
Writers and publishers sit on advisory committees which meet
periodically
in New York, Los Angeles, Nashville and Miami. Open membership meetings
are held in New York and Los Angeles.

Writers
and publishers have no say in the running of BMI. BMI holds no general
meetings for its affiliates.

TREATMENTOF
WRITERSANDPUBLISHERS

All
ASCAP
writer and publisher members are treated alike, from the newest member
to the most established member. Members are paid based on performances,
not who they are. All similar performances are similarly credited.
Members
who have a complaint about the Society's distributions to them or the
application
of the Society's rules may seek relief from the Board of Review. (See: The
ASCAP Advantage.)

No
obligation to treat all writer or publisher affiliates alike.
Affiliates
aggrieved by rules may seek arbitration, with loser liable for both
parties'
legal fees.

The ASCAP "I
Create Music" EXPO is the only music creator conference of
its kind. It covers all genres of music and includes panels, workshops,
master classes, keynotes, One-on-One sessions, song critiquing,
networking events, product displays, state-of-the-art technology
demonstrations, performances, and more. Open to all interested in
the creation of music ... ASCAP membership is NOT a prerequisite.

MEMBER
BENEFITS

All
members
receive a personalized ASCAP Member Card and are entitled to an exclusive
package of valuable benefits, services and discounts including
access
to insurance coverage for health, dental, term life, musical instrument
ar equipment, and studio and tour liability. Other benefits include
discounts
on CD manufacturing, promotional and tour merchandise, a member
investment
program, discounts on accessories from Guitar Center, airline and
travel
discounts and much more. Members also have access to a credit union
offering
a full range of financial services. ASCAPLUS also
offers an awards program (the only one of its kind in the world) that
provides cash and recognition to: 1) Active writers in the early and
mid stages of their careers, and 2) To established writers whose main
activity is outside of broadcast media.

*
THIS DOCUMENT IS NOT AN OFFICIAL PUBLICATION OF EITHER
ASCAP or BMI.